Meta has posted its newest earnings outcomes, protecting This autumn 2024, and regardless of the continued and constant predictions of the collapse of Zuckerberg’s Fb empire, the precise information reveals that Meta continues to go from energy to energy.
First off, on utilization, Meta added extra actives in This autumn, taking it to three.35 billion customers throughout its apps.
The regular rise of Threads could have helped on this respect, although Fb stays its hottest floor. However then once more, Instagram now has extra customers than Fb in Europe, although both means, mixed, Meta continues to broaden its viewers, which can present extra alternative for entrepreneurs, and extra advert {dollars} for the corporate.
On that entrance, Meta not too long ago introduced the preliminary check of Threads adverts, which can assist it additional construct on this ingredient:
Meta introduced in an enormous $48.39 billion in income for This autumn, taking it $164.5 billion for the complete yr. For comparability, Meta introduced in $134.9 billion in 2023.
The overwhelming majority of the corporate’s consumption nonetheless comes from adverts (96%), with its different bets solely simply beginning to achieve any vital traction available in the market.
However additionally they contributed to its numbers this time round:
Actuality Labs, its VR and AR division, reached a brand new income file in This autumn, as extra individuals bought Ray Ban Meta glasses and VR items.
Certainly, Ray Ban Meta gross sales have exceeded expectations, and can proceed to turn out to be an even bigger contributor to Meta’s backside line as their performance expands (finally into AR as effectively), whereas the Quest app reached the highest of the App Retailer charts at Christmas, reflecting the variety of Quest items that Santa delivered.
It’s nonetheless dropping cash on these bets general (Meta initiatives that it’s going to spend $65 billion on AI growth alone this yr, whilst you can see the continued losses for Actuality Labs within the above itemizing), however we’re seeing the preliminary seeds of promise for Meta’s imaginative and prescient, and the place that funding might finally lead for the corporate.
And the place it may lead is market dominance, particularly in VR, the place it actually doesn’t have a rival as but.
And because the firm’s consumption continues to develop, with its general income up 22% year-over-year, now’s the time for Meta to make these key investments in its future.
Meta’s additionally getting smarter with its adverts, and presenting extra of them in-stream.
And once more, that’s earlier than you consider Threads, which, at 300 million customers, and rising, presents one other big canvas for Meta’s promotions.
(Replace: In a separate put up, Zuckerberg additionally introduced that Threads is now as much as 320 million energetic customers.)
Which is able to additional increase its income per person figures:
This chart ought to make all Meta traders joyful, and whereas some customers have complained concerning the rising variety of adverts in Meta’s apps, that clearly hasn’t impacted general utilization, with all of its key metrics trending up at this stage.
Although that would nonetheless change on account of Meta’s revised moderation technique, in shifting to a Group Notes strategy, and retiring third-party fact-checking. Some individuals at the moment are seeking to go away Meta’s apps in protest over what they see as Zuckerberg bowing to President Trump’s calls for on this entrance.
However on the similar time, Zuckerberg’s decision-making right here will probably be good for enterprise, with the corporate hoping to achieve favor to assist maximize its enlargement into Europe, develop next-level AI fashions, and push forward with VR growth.
It’s additionally hoping to keep away from the impacts of international tariffs on imports, with a lot of its wearables parts made in China, and different areas. Trump’s vow to extend tariffs to hunt extra favorable offers for the U.S. might have a significant affect right here, notably on Meta’s AR glasses, which it’s nonetheless working to cut back the price of, as a way to make them a extra interesting shopper product.
As such, if Meta can get an in with the Trump workforce, that would have a spread of advantages, and reviews have advised that Zuckerberg himself is seeking to purchase a home in Washington to strengthen these ties.
So whilst you could not prefer it, Zuckerberg’s strikes do make sense. The query then is whether or not the elevated dangers of misinformation on account of this shift outweigh the broader advantages for the enterprise.
And likewise, if Zuck and Co. actually care about that both means.
By way of different impacts, Meta’s additionally nonetheless grappling with EU laws, which not too long ago noticed it fined one other $841 million for antitrust violations. It’s additionally nonetheless rationalizing its employees, with one other spherical of job cuts in October, although its general headcount truly elevated by 10% in 2024.
On the flip aspect, when it comes to potential beneficial properties, Meta stands to learn rather a lot from the confusion round TikTok’s standing within the U.S., with extra manufacturers and creators seeking to shift away from the platform for extra stability.
Meta’s additionally growing a plan to deploy AI bot profiles in its apps, which sounds unusual, however might additionally find yourself boosting in-app income, by offering extra customers with the dopamine hit of additional engagement.
Total, it’s an awesome consequence for Meta, underlining its key strengths, and its strong market positioning. It’s arguably main the best way within the three key areas of tech growth, in AI, AR, and VR connection, whereas it’s additionally nonetheless bringing in more cash regardless of its concentrate on the subsequent stage.
And whereas not all of its choices have been fashionable, the information doesn’t lie, and Meta appears to be making the appropriate strikes to propel the enterprise ahead.
The person impacts are one other query, and too usually these are solely raised with any power on reflection. However as a enterprise report, there are few firms with higher prospects.
